[quote=HLS]Suggestion:
Look out of state and get a good property manager for SFR or 2-4 unit properties.
The depreciation is much better than in CA and the cash flow can be too.
This method is not for everyybody, especially control freaks who want to drive by the property everyday, and be able to fix everything themselves.
It is amazing what can be bought for less than $99,000 in many areas.
At $99K, 25% down P&I payment is just over $400 a month for a REAL house, no HOA.
Add taxes/ins/maint and mgmt fee.
MANY houses are much less.
It’s easier to sleep at night if the property is vacant compared to $2K a month expenses.
I suppose it’s about the risk/reward potential.
There will ALWAYS be tenants to rent to at some price.[/quote]
Hahaha you just described me to a tee, I am a control freak.
I just did some searches in a couple of out-of-state areas and I see what you’re talking about. It is a bit unnerving imaging what sort of tenants you’ll have paying $500/mo to live in BFE, but hey there are good people at all levels I guess. I can definitely see how 4 units would be a sweet spot, you can handle a couple of vacancies and still be allright. With a low enough mortgage and enough equity in the property it shouldn’t be too difficult to build up the reserves in case you have to mitigate a termite/roach/meth lab infestation. It’s still less scary than throwing your money into the Wall St. casino IMO.
